Detroit leads nation in number of homes priced $200K or less
(CBS DETROIT) - Where are all the affordable homes? Well, Detroit leads the nation in the number of homes priced under $200,000 and ranks among other cities in the United States, most of which are located towards the middle of the country.
According to data from Realtor.com, some markets are affordable because they have seen a negative or stagnant population growth.
"Take Detroit," said researchers at Realtor.com. "The city hollowed out after manufacturing jobs dwindled. That drove down real estate prices, which then attracted a new set of incoming residents who want to take advantage of how affordable it is."
Now, more people have started to move into the city.
"People who were never even from the city have turned their eyes to Detroit," said Charles Ryan, an associate broker and Realtor at Keller Williams in Detroit. "They want to open a new business, purchase homes, rehab homes. In the last eight or nine years, the city has just been thriving."
The data shows Detroit has the most homes for sale below $200,000. Of these almost 4,000 homes, nearly half are priced below $100,000.
Tom Nanes, Realtor for Community Choice Realty Associates in Detroit, says that although the prices are low, it can be tricky to find a home.
In some cases, "it's cost-prohibitive to update some of these homes. There are still houses with knob and tube wiring. You can't update that. You have to do a full replacement on the electric at that point," Nanes said. "So, you could spend $50,000 without getting halfway through what the home needs."
So, while some houses may require extra expenses after purchasing, there are opportunities for buying homes for people who don't mind fixing up the house or investors who want to update a home to rent or sell.
Other cities with homes under $200,000 include Pittsburgh, Cleveland and St. Louis.
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